Fresno planner leaves panel

Ex-commissioner has personal loans tied to a developer.

Published online on Friday, Oct. 09, 2009

Fresno Mayor Ashley Swearengin has accepted the resignation of Cam Maloy from the city's Planning Commission, citing a conflict of interest.

According to city documents, Maloy received two large personal loans from entities owned by members of the Assemi family. Farid, Darius and Farshid Assemi are brothers who have residential and commercial development interests throughout the city.

The Planning Commission is perhaps the most powerful nonelected body at City Hall, and often is the final word on the regulation and approval of development projects. Maloy had been on the commission for only four months.

Swearengin said she spoke with Maloy by phone Thursday afternoon.

"She offered to resign and I told her I thought that was the right thing to do," Swearengin said Friday.

In her letter of resignation effective Thursday, Maloy told Swearengin she was resigning "in order to assure there is no real or perceived conflict of interest which will detract from the great work that the city and the planning commission are doing."

Maloy's brief stint highlights what city officials acknowledge is a flaw in the vetting process for commission nominees.

Maloy was appointed by Swearengin, and the City Council unanimously approved the appointment in June.

There was no council discussion, and the background information on Maloy dealt mainly with her extensive development experience in the private sector and with nonprofit groups.

Swearengin said she has known Maloy since 1997, when Swearengin was director of the Central Valley Business Incubator and Maloy was on the incubator's board.

Swearengin said Maloy went through a pre-nomination interview, but a thorough check of her financial interests was not conducted.

After their appointments, commission members are required by the state to periodically file a statement of economic interests with City Hall.

When The Bee began asking questions about Maloy's statement, Swearengin said, "It was the first that any of us knew of her financial connections to people who had development companies as well."

According to the statement, Maloy has a loan for more than $100,000 at 4.5% interest from the Farid and Farshid Assemi 1997 Ranch Trust. It is due upon demand or by Feb. 1, 2014.

Maloy also has a loan for between $10,001 and $100,000 at 2.5% from Assemi Brothers LLC, a California limited liability company. It is due upon demand.

The statement also notes that Maloy on Jan. 1 acquired a 5.68% "membership interest" in a business entity called Kamm South LLC.

The investment's fair market value is between $100,001 and $1 million, according to Maloy's statement.

In a Thursday interview with The Bee, before she resigned, Maloy said she used proceeds from the Assemi loans to help buy a stake in Kamm South, a farming operation on the Valley's west side.

She also said the Assemi brothers are among the many stakeholders in Kamm South.

Maloy said the Assemi brothers are friends of hers.

Swearengin said Maloy told the City Attorney's Office of the loans, and was told she merely had to recuse herself from issues involving the Assemis.

But, Swearengin said, she is not satisfied with a technical compliance with conflict-of-interest laws: "We cannot have the public thinking that anyone has any ties to the projects that are coming before the commission."

Several City Council members said they want more information on the financial history of future commission nominees. Swearengin said that will be a priority.

Swearengin said she is interviewing candidates to replace Maloy.